Free Markets, Free People
While I’ve been monitoring the upheaval in Iran, I’ve also been fascinated by the debate (and commentary) over what President Obama should or shouldn’t say about what is going on there.
Politico makes the point that the administration doesn’t want to become is part of the story. Consequently the State Department has been studying the situation, the White House was “monitoring” it and Obama had been silent. Finally, when the silence had become awkward, and other world leaders had spoken out, Obama finally commented:
“I am deeply troubled by the violence that I’ve been seeing on television,” Obama said Monday, more than two days after protests began to break out Saturday in Tehran. “I think that the democratic process, free speech, the ability of people to peacefully dissent — all of those are universal values and need to be respected, and whenever I see violence perpetrated on people who are peacefully dissenting, and whenever the American people see that, I think they are rightfully troubled.”
Not exactly the strongest statement in the world. Certainly better than silence, but not much.
You know, here’s a chance to show a little leadership, call on the ruling mullahs to do a careful investigation, invite in election monitors from around the world and have a run off so the world can see “the democratic process” actually works in Iran. Not that any of that would happen, but putting it out there as what should happen calls Iran’s hand, and puts pressure on the regime to respond.
Instead we get a statement that is more philosophical than practical, more general than specific. Something that can easily be waved away by Iran. Obama went on to say:
“I think it’s important that, moving forward, whatever investigations take place are done in a way that is not resulting in bloodshed and is not resulting in people being stifled in expressing their views,” he said.
Again, little of substance, carefully avoiding any condemnation or judgment concerning the events of the election. More talk about a process instead of the claimed irregularities.
The closest he got to actually criticizing the regime came when he talked about the desire to talk with Iran:
Obama reasserted a promise for “hard-headed diplomacy” with any Iranian regime and stressed that he wasn’t trying to dictate Iran’s internal politics, but he also expressed sympathy with the supporters of the opposition, describing “a sense on the part of people who were so hopeful and so engaged and so committed to democracy, who now feel betrayed.”
Again, very nuanced, and, at least in my opinion, very weak. Certainly I appreciate the concerns about being perceived as “trying to dictate Iran’s internal politics”, but condemning violence, election irregularities and arrests don’t really do that, do they? And while he hits around those things, he never does, in fact, condemn them. He’s “troubled” by the violence, he’s “sympathetic” with the “opposition”, and he hopes that those with dissenting views won’t be “stifled”.
Meanwhile other world leaders have spoken out more forcefully and specificially:
French Foreign Minister Bernard Kouchner called for an investigation of the election results, and German Chancellor Angela Merkel said flatly that there were “signs of irregularities” in the results.
“Expressions of solidarity with those who are defending human rights, with students and others, are important,” former Czech President Vaclav Havel said Monday.
“We respect Iranian sovereignty and want to avoid the United States being the issue inside of Iran.”
Really? The US has been the “issue inside Iran” for 30+ years. It has been the “Great Satan” since the revolution. It can’t escape being the issue even when it remains silent.
Leaders who claim to represent democracy step up when a crisis dictates a strong response. Apparently Rahm Emanuel’s “never let a good crisis go to waste” only applies domestically in the Obama administration. With the hope of engaging who ever comes out on top in Iran, Obama is content to only give tepid support to those actually engaged in trying to establish democracy in Iran.
That’s not leadership. But it isn’t unexpected either.
A level of economic government intrusion is now being contemplated like none we’ve ever seen before. If you didn’t understand the one of the main purposes of the tea parties, perhaps this will help.
But what Obama rarely says about ending the “cycle of bubble and bust” is this: he’s prepared to intervene to make sure that kind of red-hot growth doesn’t occur.
And he’s willing to do it with added government regulation if needed to prevent any one sector of the economy from getting out of balance – the way the dot-com boom did in the 1990s and the real-estate market did earlier this decade.
According to Austan Goolsbee, a key Obama economic adviser, the president plans to focus on stopping bubbles along with preventing busts. And in an interview with POLITICO, Goolsbee said the administration will be on the lookout for new bubbles, like the tech stocks or housing prices.
If new threats are spotted, he said Obama would use “regulatory oversight to prevent guys who want to make a quick buck from doing real harm to the economy. . .That is what it means to get out of the bubble and bust cycle.”
In other words, government would decide what is or isn’t a “bubble” and move to stop what it determines is a bubble. As CATO points out, one man’s expansion might be another’s “bubble”. Are you comfortable with government calling that shot?
And government would also arbitrarily decide who was or wasn’t entitled to profit from that market – it would be the final determiner of who was or wasn’t making a “quick buck” from the growth.
Any idea what that would do to any market in which the government stepped in to slow down?
Yeah, nothing could go wrong that that idea, could it?
Bottom line: you have a governing elite picking winners and losers.
Thankfully, it isn’t quite as easy as you might imagine to do what Goolsbee and Obama would like to do.
…[T]here’s not much an administration can do in practical terms to burst a developing bubble. The best way to cool things down is raising interest rates, which is the purview of the Federal Reserve. Another option would be for regulators to order banks to curtail lending to buyers of certain kinds of assets.
The lesson here, of course isn’t necessary the plan itself, but the fact that those in a position of power are contemplating this seriously. Those aren’t the plans of a moderate, and certainly not those of a capitalist. They’re the plans of a group who apparently believes that complex economies can indeed be controlled and manipulated successfully from above.
Amazing hubris. Even more amazing arrogance. Most importantly, incredibly dangerous economic thinking.
And a fairly surprising one. Regardless of your opinion of Barack Obama, most people consider him to be a great orator and communicator. Or at least they have until recently:
Of all the pitfalls Barack Obama might face in the presidency, here is one not many people predicted: He is struggling as a public communicator.
Indeed he is – read the whole piece by Jim VandeHei and Mike Allen of Politico.